Utc To Shift Operation Of Data Center To Ibm

November 08, 1991

United Technologies Corp. said Thursday that it has signed a letter of intent to shift operations of its one-year-old UTC Data Center in Newington to a subsidiary of International Business Machines Corp.

In the letter of intent, the parties agreed to negotiate a deal under which the IBM unit, Integrated Systems Solutions Corp., would operate the Newington center and provide services to divisions of Hartford-based UTC.

The fate of the center's 130 employees, most of whom were assigned there from UTC operating divisions, has yet to be determined, said UTC spokesman Martin Moore.

"That's one of the things being negotiated right now," Moore said.

In a statement released Thursday, UTC said an "outsourcing agreement" with Integrated Systems Solutions would be expected to save the aerospace and industrial conglomerate at least $100 million in the coming decade.

Moore said UTC could not disclose the financial terms under discussion. But he said the parties hoped to have a contract by the end of the year.

UTC signed its lease on the Newington data center in late 1990, and began moving employees there early this year.

The center has been providing mainframe computing services to three UTC units: Hamilton Standard of Windsor Locks, Sikorsky Aircraft of Stratford and Norden Systems of Norwalk.

Eventually, it may extend its services to other UTC divisions as well, the company said.